Do pharmaceutical companies do their own market research?

Pharmaceutical companies recognise the importance of understanding their customers and the landscape in which they operate. Any organisation working in this fast-paced, highly regulated sector needs market research to broaden their understanding and gather insights that inform decisions about product development, marketing activities, and growth strategies. Many have in-house teams that specialise in market research, but they also frequently outsource research activities to specialists.

What does market research in the pharmaceutical industry include?
With the goal of identifying opportunities and challenges that could impact the development, launch, and commercial viability of pharmaceutical products, market research in the pharmaceutical industry covers:

• Drugs or therapies
• Patient needs
• Market trends
• Competitive activity
• Regulatory environments.

In-house market research vs. outsourcing to specialists
Pharmaceutical in-house market research teams are responsible for analysing secondary data, conducting primary research (surveys, focus groups, and interviews), and integrating findings to support strategic decisions. These researchers have a deep understanding of the company’s specific products and strategic goals, ensuring that the insights gathered are directly relevant and actionable.

Conducting market research requires specific expertise and resources, therefore pharmaceutical companies frequently outsource market research activities to specialists. These market research organisations bring expert knowledge, such as advanced analytics capabilities and access to broad networks of healthcare professionals and patients. Outsourcing offers an external perspective; great for identifying blind spots and validating internal assumptions.

Why is market research so important in the pharmaceutical industry?
It’s crucial to understand the market at every stage of a pharmaceutical product’s lifecycle:

• New product development: Initially, research will focus on identifying gaps in medical needs and estimating the market potential for new treatments. This guides research and development efforts towards the commercial opportunities that will have the highest impact.
• Launch: When the launch date gets closer, market research focuses on understanding the competitive landscape, forecasting demand, and identifying the most effective channels and core messaging for marketing.
• Post-launch: Market research helps pharma companies monitor performance, understand healthcare provider and patient satisfaction, and identify areas for improvement. It’s also enables them to evolve their marketing strategy if required.

Ethical and regulatory considerations
Any organisation operating in the pharmaceutical sector must navigate the ethical and regulatory landscape, which adds another layer of complexity to any market research activities. This includes ensuring patient privacy, obtaining informed consent, and adhering to guidelines that govern the promotion of pharmaceutical products. Transparency and ethical conduct in market research are essential for maintaining public trust and meeting regulatory requirements.

Summary: Why do pharmaceutical companies outsource their market research?
Pharmaceutical companies engage in extensive market research, both in-house and through partnerships with specialists. They outsource market research to access specialists who can help them form a deeper understanding of market needs, guide product development, and inform effective marketing strategies. Market research helps ensure the success of pharmaceutical products in improving patient health – it has enormous strategic importance, given its role in drug innovation, ensuring regulatory compliance, and achieving commercial objectives.